You are here

The next big buy in junk bonds: the US consumer

Pimco, Prudential and others betting on American companies driven by retail customers. By Emma Orr
Saturday, July 30, 2016 - 05:50

HIGHER CONSUMER CONFIDENCE: Shoppers in a Home Depot store. The Bank of America Merrill Lynch high-yield index of US consumer product companies has risen 2.81% since the Brexit vote in June on a total return basis, compared with a 2.4% gain for junk bonds overall.

New York

SOME of the world's largest junk-bond investors are betting big on the US consumer.

Money managers including Pacific Investment Management Co (Pimco) and Prudential Financial Inc's PGIM are buying high-yield bonds tied to home builders, lumber, lodging, air travel and

Market voices on:

Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at

Powered by GET.comGetCom